Three Types of Health Insurance

There are three types of health insurance available for most of us today which is Health maintenance organizations (HMOS), Preferred Provider Organizations (PPOs) and Indemnity Plan.

Health maintenance organizations (HMOs). /these are organizations of healthcare personnel and facilities that provide a broad range of benefits on a prepaid basis. They are the most common delivery system of healthcare today, with many variations. The two most common are the group practice model and the individual practice association, In a group practice model, the HMO hires or contracts with physicians and other healthcare professionals to provide medical treatment at a central facility. With an individual practice association, on the other hand, the HMO contracts with individual physicians who treat HMO members in their neighborhood offices. HOMs can be very restrictive, and all of your referrals must come from your primary care physician.

Preferred provider organizations (PPOs). these generally manage healthcare benefits through a predetermined network, a group of doctors, hospitals, and other healthcare providers that have agreed to provide services at specially negotiated rates under contract with an insurance company. Enrollees in a PPO can choose a network based on their geographic location. Most doctor visits and prescriptions have a modest co-payment. Benefits are reduced of an out-of-network healthcare provider or facility is used.

Indemnity plans. These can be purchased individually or by a business as a group plan, They are, in essence, a plan that reimburses you for your medical expenses, They usually have a deductible, which is the amount you pay, and those deductibles are increasing. After you have met the deductible each year, the plan will reimburse you for 80 percent of your costs.